WorksheetsINCOME ELASTICITY OF DEMAND
Total questions: 11
Worksheet time: 6mins
Define Income Elasticity of Demand
YED measures the degree of responsiveness of quantity demanded for a good to a change in consumer's income, ceteris paribus
YED measures the degree of responsiveness of demand for a good to a change in consumer's income, ceteris paribus
YED measures the degree of responsiveness of consumer's income to a change in quantity demanded for a good, ceteris paribus
YED measures the degree of responsiveness of consumer's income to a change in demand for a good, ceteris paribus
Consumers demand less of this type of goods when their income increases.
Low grade rice
salt
bungalore
furniture
If the income elasticity of market demand is negative, most consumers view the good as:
a luxury good
having many imperfect substitutes.
an inferior good.
a normal good.
If the YED of a good is assessed to be 0.7, the good can be classified as a
salted fish
books
salt
jewelerys
Which one is the correct formula for Income Elasticity of demand?
Percentage change in income / Percentage change in quantity demand for a good
Percentage change in quantity demand for a good / Percentage change in income
Percentage change in supplied for a good / Percentage change in income
Percentage change in quantity demand for a good / Percentage change in its price
This car are referring to
Normal Goods
Inferior Goods
Luxury Goods
Compulsary Goods
YED = 0 is referring to
Normal Goods
Inferior Goods
Luxury Goods
Necessity Goods
When YED value is positive and the value is 0.5
Normal Good
Inferior Good
Luxury Good
Necessity Goods
How many categories of YED exits?
Five
Three
One
Four
Income elasticity is can be measured by
comparing the percentage change in demanded with the percentage change in income
comparing the percentage change in quantity demanded with the percentage change in price
comparing the percentage change in quantity demanded with the percentage change in income
comparing the percentage change in quantity supply with the percentage change in income
